Bitcoin slows downs as it makes its way back from the high area of around $30,000. The top crypto by market cap still records profits over the past week (3%) but could re-test support at lower levels.
Related Reading | Bitcoin Bounces Back Past $40,000, But May Struggle To Maintain Position
At the time of writing, Bitcoin trades at $41,300 with sideways movement over the past day. The cryptocurrency continues to trade in a tight range but soon could see an increase in volatility.
Data from Material Indicators (MI) records short-term resistance as BTC’s price is above its current levels. There are over $5 million in asks orders from $41,300 to around $41,400. This could suppress the price from continuing its bullish momentum.
On the other side of the trade, there is major support for BTC’s price at $39,000. At these levels, the cryptocurrency records $9 million in bid orders with much more liquidity at lower levels. This suggests BTC could strongly rebound if it returns to that area.
A pseudonym trader recently pointed out that BTC’s price has seen constant rejection from the 200 Exponential Moving Average (EMA), a level often associated with trend direction for an asset. BTC’s current EMA stands at around $42,000.
In that sense, Bitcoin needs to break above that price point to continue upwards into further resistance. This potentially will be located at around $45,000, and $48,000. The…